June 2016 Video, Planning Tip-Economic and Capital Market Monthly Review, By John Kvale

We are at the half way point of the year. In this review of the year so far and preview of the remainder, we look longer than our regular month for sentimental and digital diary reasons!

Here is our  June 2016, Extended view – Economic and Capital Market Review, with a great financial planning tip, and of course our Video for your viewing and listening pleasure.

Hope you enjoy!

June 2016 Video


Financial Planning Tip –

Estate Planning Docs In One Box

After discovering we DID NOT have a comprehensive high level Estate Planning article, a two-part series was happily created – for the record more articles similar to this are expected due to their popularity and handy reference ability:


Will – Document that directs non-beneficiary directed assets (Ex ..house, property, cash and regular investment assets) and may create trusts for minors, names a Custodian, Executor and may also create trusts and Trustees for estate tax minimization and other uses (see final statement in article below on Trusts.)

Power of Attorney– Financial document that appoints someone other than you to make most financial decisions in your absence. .

Healthcare Power of Attorney – Document that appoints someone to make important healthcare decisions if you are unable.

HIPPA – Allows your appointed person to receive medical information on your behalf.

Living Will- Cease and Decease – DNR – These titles are one in the same and are frequently confusing. This document allows medical professionals to NOT mandate all possible care, should you become deceased mentally, but not in body function.

Estate Planning Docs Part Two – Trusts


Revocable Trust – By far the most common and most commonly misunderstood Trust of the bunch. Revocable means it can be changed at the grantors request.

Testamentary Trust – Trust that is usually embedded in a Will and is created upon the grantors death.

Irrevocable Trust – The Hulk of Trusts. Being Irrevocable, once established and funded, this Trust is a beast. Estate tax, liability, inheritance are just a few items that can be addressed with an Irrevocable Trust.

QTIP Trust : Qualified Terminal Interest Trust – Most common set up by Grantor to give direction to assets beyond the spouse.

Credit Shelter/A:B Trust – Type of trust that is used to help minimize Estate taxes by maximizing the first person in a married couples Estate tax exemption upon death commonly resides in a Will.

GST or Generation Skipping Trust – This handy estate planning trust gives relief to Grantors by jumping a generation and essentially skipping the Grantors children and passing to the grandchildren.

ILIT : Irrevocable Life Insurance Trust – This trust is very useful in getting life insurance proceeds out of a Grantors estate.

Here is a link to the original detailed post.

Economic Update

Brexit changes our view on rates

With the British vote to exit the European Union, the Federal Open Market Committee (FOMC) lead by chair Janet Yellen will be hard pressed to raise rates. The only reason we can see higher rates sooner rather than later now would be some (multiple reports needed) major inflationary factors that feed through to the economic reports- While big advocates of higher rates and our research shows rates have been raised during an election year, it’s likely off the table for the remainder of the year.

Brexit changes US Presidential Election

Brexit may also change the US Presidential election as the polls of the British were so far from accurate, we expect many to have less confidence in our current US Presidential polls.

Capital Markets Update

New all time high?

With the afore-mentioned rate increase off the table and possible international perceived disruption due to Brexit – US capital markets  may be the recipient of fresh capital from global corners of the world.

New highs (S&P 500) would not surprise us at this time and the odds are now better than not from our perch. Minor expansion in Bunny like fashion (explanation to come upon occurrence) looks possible, of course twists and turns have been the norm lately.

7-5-16 SP 500

Earnings are the ultimate driver of equity prices, and US capital markets are currently frothy if not overpriced.  We think they can get more overpriced due to the above concerns.

7-1-16 PE Ratio SP 500

 Long term average is 15!

Have a Great Day!

See you again at the end of July !

John A. Kvale

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
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One response to “June 2016 Video, Planning Tip-Economic and Capital Market Monthly Review, By John Kvale

  1. Pingback: Q 2 2016 Quarterly Cover Letter | $treet-¢ents

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